World Bank approves US$21 million loan for Armenia’s public sector modernization

The World Bank Board of Executive Directors today approved a US$21 million loan for theThird Public Sector Modernization Project (PSMP III) for Armenia. This project will further assist the Government of Armenia in its on-going efforts to improve quality of the public financial reporting and to improve access to selected enhanced e-government services.

PSMP III supports three main components: (i) Public Financial Management Information Systems; (ii) e-Governance Solutions for Improved Service Delivery; and (iii) Capacity Building and Small Capacity Building Interventions.

The first component will assist the Government to improve the efficiency, effectiveness and comprehensiveness of its financial management and accounting through the development of a Government Financial Management Information System (GFMIS). The proposed GFMIS modules will include improvement, among others, in budget planning, budget execution, public procurement, debt management, accounting, budget reporting, and the general ledger.

Strengthening governance through improved public service delivery is among the priorities for Bank support,” said Laura E. Bailey, World Bank Country Manager for Armenia. I will particularly highlight the proposed Citizen-Government Interface for Accountability under the second project component. This will support the establishment of feedback mechanisms to facilitate citizen and business access to government services, address grievances, and monitor client satisfaction.”

The second component will support the implementation of select priorities as identified in Armenia’s e-Governance Strategy. Key elements will include: development of the enabling environment by strengthening policy, regulatory frameworks and building institutions and capacity within the government to undertake introduction of e-governance platforms, and introduction of foundational platforms and infrastructure necessary for government-wide e-services.

Other sub-components are focused on developing:e-Transport modules to improve efficiency and the quality of transportation services in Yerevan; additional modules to the current e-Consular system, including a consular registration process for travelers and issuing e-visas; and upgrading the current e-Licensing system through automation of the simplified procedure of licenses issued on behalf of the Ministry of Finance, management of electronic license registry, and streamlined reports and notifications.

The third component seeks to strengthen the capacity of the Civil Service Council and Armenian Academy of Public Administration to modernize the training system for public servants and raise the quality of trainings.

PSMP III continues the reforms supported under PSMP I and PSMP II (on-going).  PSMP-I, implemented between 2004 and 2011, supported institutional reforms in the areas of policy formulation, local government and civil service, together with Public Financial Management interventions in the areas of public procurement and external and internal audit.

The World Bank will provide a US$21 million IBRD fixed spread loan with a 14.5-year grace period and a total repayment term of 25 years.

Since joining the World Bank in 1992 and IDA in 1993, the commitments to Armenia total approximately US$2,179.730 million.

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